Which of the following is a characteristic of a corporation but not of a small family-owned business?
a. The corporation buys inputs in markets for the factors of production.
b. The corporation sells output in markets for goods and services.
c. The corporation is guided in its decisions by the objective of profit maximization.
d. The corporation faces a principal-agent problem created by the separation of ownership and control.
d
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The ultimatum game and the dictator game are used in economic experiments to test whether fairness is an important influence on consumer decision-making
Indicate whether the statement is true or false
If float is predicted to decrease because of good weather, the manager of the trading desk at the New York Fed bank will likely conduct ________ open market operations to ________ reserves
A) defensive; inject B) defensive; drain C) dynamic; inject D) dynamic; drain
If U.S. monetary authorities want to strengthen the dollar, they will
a. sell dollars in the foreign exchange market b. buy dollars in the foreign exchange market c. declare the dollar devalued d. sell dollars and buy only Euros in the foreign exchange market e. encourage other central bankers to sell dollars in the foreign exchange market
The ________ states that if the costs of transportation are small, the price of the same good in different countries should be roughly the same.
A. price feedback effect B. law of one price C. trade feedback effect D. balance of trade effect